102 KB973 KB64 KB2024Markovič, Luka1 spletni vir (1 datoteka PDF (24 str.))COBISSID:186449923ISBN:978-961-96526-4-0URN:URN:NBN:SI:doc-GYHUPXT9enBanka SlovenijeknjigeMonetary policy surprises and communication strategies in the euro area's tightening cycle|This paper investigates the challenges and dynamics of monetary policy normalization in the euro area following the sustained surge in headline inflation in 2021. To analyze the monetary surprises during the ECB's monetary meetings in the tightening cycle, I employ factor decomposition models by Altavilla et al. (2019) and Motto and Özen (2022). I identify five factors associated with conventional policy, short and medium-term forward guidance, conventional asset purchasing programmes and programmes to ensure the transmission of monetary policy. I find substantial monetary surprises during this tightening cycle, though the largest were found in the first policy rate hike in July 2022 and in the policy rate hike in the midst of great financial stress during the banking crisis in March 2023, following the Silicon Valley Bank collapse. Next, I observe that the explicitly communicated outline of the reaction function of the ECB in the March 2023 Governing Council meeting seems to have at least partially contained financial market volatility during the monetary policy decision announcements and limited monetary policy surprisesTEXTknjigebooksSlovenian National E-content AggregatorNational and University Library of Slovenia